Nihon Dempa Kogyo Co., Ltd. (6779) AI Stock Analysis

• Market Cap: ¥28.51B
• Dividend Yield: 2.86%
• Average Volume (3M): 290.11K
• Price to Earnings (P/E): 20.5
• Beta (1Y): 1.25
• Revenue Growth: 2.87%
• EPS Growth: -53.44%
• Country: JP
• Employees: 2,366
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 12.51
• Shares Outstanding: 23,128,605
• 10 Day Avg. Volume: 236,430
• 30 Day Avg. Volume: 290,106
• PEG Ratio: -0.46
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 7.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 94.54
• Revenue Forecast (FY): ¥53.99B

• Rating: 59 Neutral
• Price Target: ¥1,354.00 ▲(32.49% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is held back primarily by deteriorating financial performance—sharp revenue decline, compressed margins, and materially weaker cash generation—despite an acceptable balance sheet. Technicals are a clear positive with an established uptrend and neutral momentum. Valuation is reasonable with a modest dividend, but not compelling enough to outweigh the recent fundamental weakening.

Positive Factors

Sticky design‑ins / customer relationships

NDK's business benefits from design-in dynamics that embed its crystal units and oscillators into customer platforms for multi-year runs. These entrenched specifications create recurring revenue windows, raise switching costs, and support predictable demand and margin visibility over multi-quarter horizons.

Diversified end-market exposure

NDK supplies frequency‑control parts into communications, industrial, automotive and consumer markets, spreading demand risk. This product-market breadth cushions the company against single-industry downturns and captures secular growth in automotive electronics and connectivity over coming quarters.

Acceptable balance sheet / moderate leverage

Debt roughly in line with equity indicates a balanced capital structure that limits refinancing pressure and preserves capacity for working capital or selective capex. A stable asset base and moderate leverage improve resilience while management addresses weaker earnings and cash flow.

Negative Factors

Sharp revenue decline

A 33.7% TTM revenue drop signals lost volume or weaker design wins and materially reduces operating leverage. Sustained top-line contraction erodes scale advantages, limits reinvestment capacity and raises the risk that fixed costs and R&D cannot be adequately absorbed over the next several quarters.

Weak cash generation

Operating cash conversion below 50% and nearly zero free cash flow reduce financial flexibility. Over a multi‑quarter horizon this restricts capacity to fund capex, support production ramp or pay distributions without accessing external financing, raising funding and execution risk.

Margin compression and low returns

Declining EBIT and net margins alongside a low ROE indicate weaker pricing, mix shifts or lost operating leverage. Persistently compressed margins will limit cash available for strategic investments, weaken competitiveness against lower-cost rivals, and impair long-term shareholder returns.

Nihon Dempa Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Nihon Dempa Kogyo Co., Ltd. manufactures and sells quartz crystal devices. The company also offers crystal clock oscillators; high precision oscillators; simple packaged, temperature compensated, voltage-controlled, frequency controlled, and oven controlled crystal oscillators; and crystal units and filters, SAW devices, synthetic quartz crystals/crystal blanks/optical components, ultrasonic probes, bio sensors, outgas sensors, frequency synthesizers, millimeter-wave converters, and signal generators. Its products are used in various applications consisting of IoT products, automotive products, smartphones, network equipment, digital consumer electronics, personal computers, watches, digital cameras, and game consoles, as well as 5G applications. Nihon Dempa Kogyo Co., Ltd. primarily sells its products in Japan, rest of Asia, Europe, and North America. The company was formerly known as Nanbu Shoko Co., Ltd. and changed its name to Nihon Dempa Kogyo Co., Ltd. in 1950. Nihon Dempa Kogyo Co., Ltd. was incorporated in 1948 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nihon Dempa Kogyo generates revenue through the sale of its quartz crystal products to various industries, including telecommunications, automotive, and consumer electronics. The company benefits from a diversified customer base, allowing it to tap into multiple revenue streams. Key revenue streams include direct sales of quartz oscillators and filters, which are critical for electronic signal processing. Additionally, the company engages in long-term partnerships with major electronics manufacturers, ensuring a steady demand for its products. Factors contributing to its earnings include technological advancements in product development, the growing demand for high-frequency and miniaturized components, and the expansion of the global electronics market.

Nihon Dempa Kogyo Co., Ltd. Financial Statement Overview

Summary

Results are mixed but weakening: TTM revenue fell sharply (-33.7%) with margin compression (EBIT ~6.4%, net ~2.2%). The balance sheet is reasonably stable with moderate leverage (debt-to-equity ~0.96), but returns are softer (ROE ~4.0%). Cash flow is the main concern: operating cash flow covers <0.5x net income and free cash flow is near breakeven with a steep decline (~-94%).

Income Statement

TTM (Trailing-Twelve-Months) shows a sharp revenue decline (-33.7%) and a meaningful step-down in profitability versus the prior annual periods: EBIT margin fell to ~6.4% and net margin to ~2.2% (vs. ~6.9% and ~3.4% in FY2025, and much higher in FY2023–FY2022). Gross margin remains fairly stable around the high-20% range, but the earnings compression suggests weaker pricing/mix, higher costs, or lower operating leverage. Profitability is still positive, but the trajectory is clearly weaker recently.

Balance Sheet

Leverage is moderate with debt roughly in line with equity (debt-to-equity ~0.96 in TTM (Trailing-Twelve-Months)), an improvement from the elevated leverage seen earlier (e.g., FY2021). The asset base has been relatively stable, and the capital structure looks more balanced than in prior years. The main offset is softer shareholder returns recently (return on equity ~4.0% in TTM (Trailing-Twelve-Months), down from stronger historical levels), indicating the balance sheet is acceptable but current earnings are not fully utilizing it.

Cash Flow

Cash generation has weakened materially in TTM (Trailing-Twelve-Months): operating cash flow is positive but covers less than half of net income (~0.42x), and free cash flow is near breakeven (¥0.2B) with a steep decline versus the prior year period (free cash flow growth about -94%). While free cash flow still exceeds reported net income on a proportional basis (~0.65x), the absolute drop in free cash flow and weaker cash conversion raise near-term quality-of-earnings and funding flexibility concerns compared with FY2024–FY2025.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	53.26B	53.06B	50.31B	52.51B	45.41B	39.20B
Gross Profit	14.49B	15.36B	14.39B	16.41B	12.51B	6.58B
EBITDA	6.42B	7.07B	7.49B	11.21B	8.51B	6.28B
Net Income	883.00M	1.79B	2.33B	6.18B	5.46B	1.98B
Balance Sheet
Total Assets	72.78B	71.52B	66.17B	64.16B	61.22B	63.05B
Cash, Cash Equivalents and Short-Term Investments	12.98B	15.88B	12.30B	10.29B	10.36B	16.71B
Total Debt	30.97B	30.32B	26.15B	27.25B	27.13B	35.72B
Total Liabilities	41.87B	42.34B	38.80B	40.16B	41.18B	49.50B
Stockholders Equity	30.89B	29.17B	27.37B	24.00B	20.04B	13.55B
Cash Flow
Free Cash Flow	208.00M	2.44B	4.77B	3.29B	2.12B	-2.15B
Operating Cash Flow	4.08B	6.11B	8.53B	6.56B	4.56B	124.00M
Investing Cash Flow	-6.26B	-4.45B	-3.81B	-3.23B	-2.33B	313.00M
Financing Cash Flow	3.60B	1.91B	-2.95B	-3.52B	-8.91B	5.42B

Nihon Dempa Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1022.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6779, the sentiment is Positive. The current price of 1022 is below the 20-day moving average (MA) of 1205.85, below the 50-day MA of 1095.70, and above the 200-day MA of 941.77, indicating a bullish trend. The MACD of 69.11 indicates Negative momentum. The RSI at 61.67 is Neutral, neither overbought nor oversold. The STOCH value of 46.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6779.

Nihon Dempa Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6787	78 Outperform	¥619.36B	12.76	―	0.76%	15.02%	46.62%
6814	76 Outperform	¥223.63B	22.19	―	1.88%	6.56%	106.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6962	60 Neutral	¥20.91B	10.83	1.29%	4.91%	-1.71%	―
6996	60 Neutral	¥134.28B	11.45	―	2.18%	-0.93%	-45.03%
6779	59 Neutral	¥28.51B	20.49	―	2.86%	2.87%	-53.44%
6976	56 Neutral	¥548.44B	15.62	―	2.57%	4.81%	-49.43%

Nihon Dempa Kogyo Co., Ltd. Corporate Events

Nihon Dempa Kogyo Launches ESOP Support Trust to Align Employees With Long-Term Growth

Nihon Dempa Kogyo has approved the introduction of an Employee Stock Ownership Plan support trust designed to bolster its employee welfare system and strengthen links between staff incentives and the company’s medium- to long-term corporate value. The scheme, modeled on ESOP structures used in the U.S. and Japanese policy guidance, will use a trust to acquire company shares in advance and sell them steadily to the in-house employee stock ownership association.

Under the new framework, employees contribute monthly to the ESOP, which in turn buys shares from the trust while loan repayments to a financial institution are funded by share sale proceeds. Any trust profits from share price gains at termination will be distributed to eligible employees, while the company will cover any residual loan obligations if stock price declines create losses, underscoring a commitment to both employee participation in equity and support for long-term shareholding stability.

The most recent analyst rating on (JP:6779) stock is a Hold with a Yen1175.00 price target. To see the full list of analyst forecasts on Nihon Dempa Kogyo Co., Ltd. stock, see the JP:6779 Stock Forecast page.

Nihon Dempa Kogyo Posts Lower Nine-Month Profit but Keeps Full-Year Outlook and Dividend

Nihon Dempa Kogyo reported consolidated financial results for the nine months ended December 31, 2025, showing net sales of 39,681 million yen and operating income of 1,518 million yen, both down year on year, with net income attributable to owners of the parent falling to 1,518 million yen. Despite weaker earnings, the company’s financial position remained solid, with total assets of 72,777 million yen and an equity ratio of 42.4%, and it kept its full-year forecast and dividend plan unchanged, signaling stable capital management and no immediate shift in shareholder return policy.

For the full fiscal year ending March 31, 2026, Nihon Dempa Kogyo continues to forecast net sales of 53,400 million yen and net income attributable to owners of the parent of 3,200 million yen, implying a recovery in profitability in the final quarter. The maintained guidance and consistent annual dividend of 30 yen per share suggest management’s confidence in demand for its crystal devices and a commitment to stable returns, even as current-period results reflect a tougher operating environment.

The most recent analyst rating on (JP:6779) stock is a Hold with a Yen1129.00 price target. To see the full list of analyst forecasts on Nihon Dempa Kogyo Co., Ltd. stock, see the JP:6779 Stock Forecast page.